Some Contradictions of Capitalist Success

In the general euphoria about the collapse of communist regimes in Eastern Europe, it is often assumed that capitalism has been vindicated. To be sure, the failure of the Soviet model has shown the futility of attempting to organize an economy that minimizes the role of markets and the scope of the individual’s choice. However, the case for free-market capitalism espoused by Margaret Thatcher and Ronald Reagan is shakier than ever.

For one thing, the last ten years have taught ...